Hong Kong’s central bank has accused other banks of creating what it thinks a CBDC should look like.
According to CoinDesk, Hong Kong is working towards launching its own central bank digital currency, the e-HKD, in 2023. However, a major part of the scheme is now dependent on other banks. reports, Hong Kong’s central bank accuses other banks of coming up with what they think cbdc should look like That is, they have to decide whether it will be completely centralized or decentralized.
Hong Kong Bank to Present CBDC Proposal
According to the source, the country’s regulators only allow Hong Kong banks to conduct their own research and submit counter offers. This means that, unlike the People’s Bank of China’s e-CNY, e-HKD’s approach will not be influenced by its central government. Additionally, the source also suggests that general public opinion may not be involved in its making eventually.
As of now, banks have reportedly started gearing up to come forward and submit their proposals. For example, one unnamed major bank reportedly holds the position that e-HKD should be hosted on a permissioned blockchain. But this idea is also largely disputed.
Recall that last year, the Hong Kong Monetary Authority[HKMA]published a discussion paper seeking stakeholder views on retail CBDCs. Essentially, concerns about e-HKD ending up on a permissioned or permissionless chain raise concerns about security and privacy.
To put the above statement into perspective, in a permissionless chain setting, authorities may not be able to seize assets of a user under investigation if such a user can withdraw from a self-custody wallet. Whereas, a permissive chain enables them to seize those assets.
Whatever the case, Hong Kong is winding down its CBDC efforts and will reach a proper conclusion in the coming year. This is especially important for a society that currently relies heavily on cash for most of its daily activities.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. Although away from crypto, Mayowa’s distractions include discussing soccer or world politics.
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